Google Gemini growth puts pressure on OpenAI leadership

Google parent company Alphabet is gaining momentum in the artificial intelligence race, with strong product growth and rising revenues helping shift investor perception after concerns last year that the company was falling behind competitors.

Executives struck a confident tone after the release of the Gemini 3 AI model, which has driven higher user engagement and expanded adoption across both consumer and enterprise products, News.Az reports, citing Reuters.

Alphabet CEO Sundar Pichai said the company’s AI investments are now generating growth across multiple business segments, from cloud computing to core products such as search. The company is considering sharply increasing capital spending in 2026 to expand AI infrastructure and computing capacity.

The Gemini app has surpassed 750 million monthly active users, reflecting rapid adoption since recent upgrades. The model is now integrated into Google’s search AI features and enterprise tools, where paid licenses have reached millions of users.

Alphabet’s cloud division has also posted strong results, with revenue rising sharply in recent quarters. Analysts say this performance has helped reassure investors that heavy AI spending is translating into real financial returns.

The shift marks a major turnaround from earlier investor concerns that Google was losing ground in the AI race. Some analysts now say the company is viewed as a leading player alongside other major tech firms with massive market valuations.

Meanwhile, market sentiment toward some competitors has become more cautious, with investors increasingly focused on which companies can sustain large AI investments while maintaining profitability.

Industry experts say the next phase of the AI competition will depend not only on technology leadership, but also on which companies can most effectively turn AI innovation into long-term revenue growth.

News.Az 

By Aysel Mammadzada